Old Dominion Freight Line Reports 47.3% Increase in Fourth-Quarter
Earnings Per Diluted Share to $0.81 on 21.7% Growth in Revenue

Quarterly Operating Ratio Improves 260 Basis Points to 84.4%

February 05, 2015 07:04 AM Eastern Daylight Time

THOMASVILLE, N.C.--(EON: Enhanced Online News)--Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced financial
results for the three-month and twelve-month periods ended December 31,
2014. For the fourth quarter, revenue increased 21.7% to $721.0 million
from $592.5 million for the fourth quarter of 2013. Net income rose
48.2% to $69.9 million for the fourth quarter of 2014 from $47.2 million
for the comparable quarter in 2013. Earnings per diluted share were
$0.81 for the fourth quarter of 2014, an increase of 47.3% from $0.55
for the same prior-year quarter. The Company’s operating ratio improved
to 84.4% for the fourth quarter of 2014 from 87.0% for the fourth
quarter of 2013.

“Old Dominion completed another year of outstanding performance with
fourth-quarter results that included accelerated growth rates for
revenue, tonnage and earnings per diluted share”

Revenue for 2014 increased 19.3% to $2.79 billion from $2.34 billion for
2013. Net income grew 29.8% for 2014 to $267.5 million from $206.1
million for 2013. Earnings per diluted share for 2014 increased 29.7% to
$3.10 from $2.39 for 2013. Old Dominion’s operating ratio improved to
84.2% for 2014 from 85.5% for 2013.

"Old Dominion completed another year of outstanding performance with
fourth-quarter results that included accelerated growth rates for
revenue, tonnage and earnings per diluted share," commented David S.
Congdon, President and Chief Executive Officer of Old Dominion. "Our
revenue growth once again reflects increased market share, which we
attribute to our employees' ability to provide superior on-time and
claims-free service at a fair and equitable price. The combination of
revenue growth and the 260 basis-point improvement in our operating
ratio contributed to the 47.3% improvement in earnings per diluted share
for the fourth quarter of 2014. In addition, our earnings per diluted
share benefited from the repurchase of $5.5 million of common stock
under our two-year, $200 million stock repurchase program that we
announced in November 2014.

"The Company's strong financial results for the quarter reflect improved
freight density and yield. LTL tons per day increased 19.8% for the
fourth quarter on a 17.1% increase in shipments and a 2.3% increase in
weight per shipment. LTL revenue per hundredweight increased 1.5%
despite the decline in fuel surcharge rates, decrease in length of haul
and increase in weight per shipment, each of which generally has the
effect of lowering this yield metric. Excluding fuel surcharges, revenue
per hundredweight increased 3.0%, as the pricing environment has
remained favorable.

"Our ability to increase market share and grow tonnage in 2014 was made
possible by our commitment to providing superior service while also
continuing to invest in our network, equipment, technology and, most
importantly, our people. To meet the demands of our existing business
and anticipated growth, we expanded our workforce significantly during
2014 with the addition of 2,370 full-time employees. While there are
typically increased costs and reduced productivity associated with new
employees, we believe our education and training programs help to
maximize our employees' ability to contribute to our long-term success.

"We invested heavily in the capacity and capabilities of our network,
equipment and technology in 2014, which has further differentiated Old
Dominion in a capacity-constrained industry. For full-year 2014, our
capital expenditures totaled $367.7 million, including $117.5 million
for real estate and service center expansion projects, $206.3 million
for tractors, trailers and other equipment and $43.9 million for
technology and other assets.

"For 2015, we expect our capital expenditures to total $463.3 million,
including planned expenditures of $164.7 million for real estate and
service center expansion projects, $271.8 million for tractors, trailers
and other equipment and $26.8 million for technology and other assets."

Mr. Congdon concluded, "Our fourth-quarter financial and operating
results allowed us to finish our record year on a very strong note. By
staying focused on delivering a superior service value to our customers,
while also making the necessary investments in our capacity and our
people, we believe we can continue to gain market share and produce
further profitable growth. We also expect the long-term execution of our
business model to allow us to continue our long-term record of growth in
earnings and shareholder value."

Old Dominion will hold a conference call to discuss this release today
at 10:00 a.m. Eastern Standard Time. Investors will have the opportunity
to listen to the conference call live over the Internet by going to www.odfl.com.
Please log on at least 15 minutes early to register, download and
install any necessary audio software. For those who cannot listen to the
live broadcast, a replay will be available at this website shortly after
the call through March 5, 2015. A telephonic replay will also be
available through February 19, 2015 at (719) 457-0820, Confirmation
Number 8650231.

Forward-looking statements in this news release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. We caution the reader that such forward-looking statements
involve risks and uncertainties that could cause actual events and
results to be materially different from those expressed or implied
herein, including, but not limited to, the following: (1) the
competitive environment with respect to industry capacity and pricing,
including the use of fuel surcharges, such that our total overall
pricing is sufficient to cover our operating expenses; (2) our ability
to collect fuel surcharges and the effectiveness of those fuel
surcharges in mitigating the impact of fluctuating prices for fuel and
other petroleum-based products; (3) the negative impact of any
unionization, or the passage of legislation or regulations that could
facilitate unionization, of our employees; (4) the challenges associated
with executing our growth strategy, including the inability to
successfully consummate and integrate any acquisitions; (5) changes in
our goals and strategies, which are subject to change at any time at our
discretion; (6) various economic factors such as economic recessions and
downturns in customers' business cycles and shipping requirements; (7)
increases in driver compensation or difficulties attracting and
retaining qualified drivers to meet freight demand; (8) our exposure to
claims related to cargo loss and damage, property damage, personal
injury, workers' compensation, group health and group dental, including
increased premiums, adverse loss development, increased self-insured
retention levels, and claims in excess of insured coverage levels; (9)
potential cost increases associated with healthcare legislation; (10)
the availability and cost of capital for our significant ongoing cash
requirements; (11) the availability and cost of new equipment and
replacement parts, including regulatory changes and supply constraints
that could impact the cost of these assets; (12) decreases in demand
for, and the value of, used equipment; (13) the availability and cost of
diesel fuel; (14) the costs and potential liabilities related to
compliance with, or violations of, existing or future governmental laws
and regulations, including environmental laws, engine emissions
standards, hours-of-service for our drivers, driver fitness requirements
and new safety standards for drivers and equipment; (15) the costs and
potential liabilities related to litigation and governmental
proceedings; (16) various risks arising from our international business
operations and relationships; (17) the costs and potential adverse
impact of non-compliance with rules issued by the Federal Motor Carrier
Safety Administration, including its Compliance, Safety, Accountability
initiative; (18) seasonal trends in the less-than-truckload industry,
including harsh weather conditions; (19) our dependence on key
employees; (20) the concentration of our stock ownership with the
Congdon family; (21) the costs and potential adverse impact associated
with future changes in accounting standards or practices; (22) the
impact of potential disruptions to our information technology systems or
our service center network; (23) damage to our reputation from the
misuse of social media; (24) dilution to existing shareholders caused by
any issuance of additional equity; and (25) other risks and
uncertainties described in our most recent Annual Report on Form 10-K
and other filings with the Securities and Exchange Commission. Our
forward-looking statements are based upon our beliefs and assumptions
using information available at the time the statements are made. We
caution the reader not to place undue reliance on our forward-looking
statements (i) as these statements are neither a prediction nor a
guarantee of future events or circumstances and (ii) the assumptions,
beliefs, expectations and projections about future events may differ
materially from actual results. We undertake no obligation to publicly
update any forward-looking statement to reflect developments occurring
after the statement is made, except as otherwise required by law.

Old Dominion Freight Line, Inc. is a leading, less-than-truckload
(“LTL”), union-free motor carrier providing regional, inter-regional and
national LTL service and other logistics services from a single
integrated organization. In addition to its core LTL services, the
Company offers its customers a broad range of value-added services
including international freight forwarding, ground and air expedited
transportation, container delivery, truckload brokerage, supply chain
consulting, warehousing and consumer household pickup and delivery.